The preparation of adjusting entries is:
A)straightforward because the accounts that need adjustment will be out of balance.
B)needed to ensure that the expense recognition principle is followed.
C)only required for accounts that do not have a normal balance.
D)optional when financial statements are prepared.

Question

Quizplus · Accepted Answer

Adjusting entries are necessary to ensure that revenues and expenses are recognized in the period they occur, in accordance with the expense recognition principle.

The Preparation of Adjusting Entries Is